UPS In Cash Deal To Buy Mail Boxes Etc.

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March 7, 2001

New York-Shipping giant United Parcel Service Inc. has
agreed to acquire business and shipping center franchisor Mail
Boxes Etc., a unit of U.S. Office Products, in order to increase
its accessibility to residential, home office and small-business
customers.

The transaction will be conducted in cash and is expected to
close within the next few months, UPS spokesman Norman Black said.
Other terms were not released.

San Diego-based Mail Boxes Etc. is comprised of more than 4,300
retail location in 29 countries. The Mail Boxes Etc. business will
be conducted through a unit of Atlanta-based UPS, the companies
said in a release.

Households and small businesses "tend to rely on authorized
shipping outlets like MBE," Black said. "Their volume is
not big enough to schedule a UPS driver to come by their
house."

Black said Mail Boxes Etc. stores will continue to offer
shipping services from a variety of companies, including UPS, FedEx
Corp. and DHL.

"Over time," Black said, "we may get to the point
where there is additional promotion of UPS." -The New York
Times